Tommy's Toys Produces Two Types of Toys: Trains and Dolls

question 37

Multiple Choice

Tommy's Toys produces two types of toys: trains and dolls. Tommy's uses stainless steel to manufacture the trains and plastic to manufacture the dolls. Information regarding the usage of steel and plastic for the past year follows: What is the standard direct material price per pound for the plastic in the dolls?

• A)$6.00/lb.
• B)$6.55/lb.
• C)$2.25/lb.
• D)$0.25/lb.

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Definitions:

Market Price

The price at which goods and services are bought and sold in a competitive marketplace, reflecting supply and demand dynamics.

Price Ceiling

A price ceiling is a government-imposed limit on the price charged for a commodity, with the intention of keeping prices at an affordable level for consumers.

Team Structure

A structure that uses permanent and temporary cross-functional teams to improve lateral relations.

Sense Identification

The process of recognizing and understanding one's feelings, surroundings, or the current situation; often used in the context of personal or organizational development.